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If a company makes a payment to a bank or lending institution to pay back an amount borrowed in the form of a loan, which

If a company makes a payment to a bank or lending institution to pay back an amount borrowed in the form of a loan, which of the following is true regarding the accounting equation for that company?

Assets Increase and Liabilities Decrease

Assets Decrease and Stockholders' Equity Decreases

Assets Decrease and Liabilities Decrease

Assets Decrease and Stockholders' Equity Increases

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